NAC manages European CLOs under the Mercator CLO program. A CLO is a collateralized loan obligation or structured investment vehicle which invests in a diversified portfolio of bank loans and is funded by a number of rated and unrated notes issued to institutional investors. CLOs are cash flow vehicles and are therefore not significantly affected by mark-to-market price movements. Mercator CLO investors investing in the first loss or equity tranche receive cash distributions from the excess loan interest earned on a periodic basis rather than receiving mark-to-market based performance. Investors in the rated debt tranches receive base rate interest plus a fixed spread throughout the life of the CLO. To view NAC's managed Funds please login.